I live in TX but occasionally I get sales taxes charged on purchases from other states. Talking eBay coins only here. I have to watch my purchases and suggest others do the same. Recently, the only tax I’ve been hit with was from Maryland.
@oldabeintx said:
PS I just looked up Maryland sales taxes and the info contradicts my experience. I’ve seen eBay screw up in the past. Any MD dealers want to comment?
MD sales tax would NEVER be due on an item the vendor ships to TX. Applies to other states as well.
Florda has no sales tax on U.S. coins. I believe that there is no tax on purchases of bullion and single foreign coins at over $500.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
The Maryland legislature, both chambers, has voted unanimously essentially to undo what they and the governor did a year ago. The situation was, and hopefully soon will be again, pending the governor's signature, that coin and bullion purchases over $1000 are not taxed. The current situation is that all of it gets taxed unless the sale occurs at the Baltimore Convention Center, i.e., at one of Whitman shows.
Collector of Liberty Seated Half Dimes, including die pairs and die states
We are hoping to establish residency in another state in the next 1-2 years - would have done it sooner if not for baby sitting duties!
Hope to resume collecting then!
Thanks for the interesting comments and perspectives.
"My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity." (Baccaruda, 12/03).I find it hard to believe that he (Trump) rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world. (Putin 1/17) Gone but not forgotten. IGWT, Speedy, Bear, BigE, HokieFore, John Burns, Russ, TahoeDale, Dahlonega, Astrorat, Stewart Blay, Oldhoopster, Broadstruck, Ricko, Big Moose, Cardinal.
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
"My friends who see my collection sometimes ask what something costs. I tell them and they are in awe at my stupidity." (Baccaruda, 12/03).I find it hard to believe that he (Trump) rushed to some hotel to meet girls of loose morals, although ours are undoubtedly the best in the world. (Putin 1/17) Gone but not forgotten. IGWT, Speedy, Bear, BigE, HokieFore, John Burns, Russ, TahoeDale, Dahlonega, Astrorat, Stewart Blay, Oldhoopster, Broadstruck, Ricko, Big Moose, Cardinal.
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
@bronzemat said:
It's 11.25% where I live in California.
There’s no sales tax in California on bullion or coin purchases greater than $2000.
There are plenty of dealers nationally who do not charge sales tax.
States charge the tax; dealers and others collect it.
This may be true. Tax might be built into the price but I’m not charged an extra 8.75% tax on orders less than $2000.
It is true. The dealer or whomever collects it for the state. Shipping is another matter as the dealer is the one who charges that. Isn't pedantry wonnerful?
With the over $2000 exemption in California, I know one dealer who will sell you "collectible" $100 bills for $100.10 to get you over the $2000 limit. And in most cases, customers use those same "collectible" bills to pay for the transaction.
Told him before that doesn't work as paper money isn't part of the exemption. That sort of game might work if he just added whatever was needed in 90% junk silver to the invoice to get it over $2000, then in a separate transaction bought the junk silver right back from the customer.
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
@DisneyFan said:
Can you imagine a garage sale seller filing a sales tax form?
Not really. How many people sell stuff at a garage sale for more than they paid?
Doesn't matter.
Sales tax is based on revenue not profit.
Yes, that's correct. My bad. However... most garage sales of used personal items are treated as casual/occasional sales and are not subject to sales tax in practice.
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
So why isn't "investment grade" art exempt? Or "investment grade" Lionel trains? Bullion could be, and often is, in a different category. There is no reason why an SVDB cent should be treated any differently than Hess trucks. It's only "investment grade" because you want to think of it as an investment, not because it is any more of an investment than an antique car.
All comments reflect the opinion of the author, even when irrefutably accurate.
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
So why isn't "investment grade" art exempt? Or "investment grade" Lionel trains? Bullion could be, and often is, in a different category. There is no reason why an SVDB cent should be treated any differently than Hess trucks. It's only "investment grade" because you want to think of it as an investment, not because it is any more of an investment than an antique car.
.
All good points, albeit maybe twisting my comments somewhat ... but fair enough. There are a lot of things that can be considered safe haven (or not so safe) places to park money that are sometimes subject, and other times not subject to Point of Sale taxation. Although for a state that didn't tax these two items forever, it seems like just another revenue grab ... and it that respect, I'm not a fan.
Also Investment vehicles can be ROI as a Return OF Investments just as much as those that that earn a Return ON Investment. But again, all fair points.
However, for those of you commenting like @BAJJERFAN and @jmlanzaf , are you living in states that charge sales tax on your Coin and Bullion purchases? And are you spending more building those collections or bullion stacks at a rate of, let's say, more than $5,000. a year? Just curious.
Not to go political, but point-of-sale taxation on earned money is a form of double taxation, and while we have all become conditioned to paying some, and generally all reap the benefits (and downfalls) of the services those taxes support, when the rules change and the reasoning seems unjust, it is our civic duty to question authority when needed and/or fight back as necessary.
And on that last note, FWIW, I spent more than a few years serving with other men and women who helped make sure we all have the freedom to do the same.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
@MEJ7070 said:
I don’t understand why a state would tax bullion.
I REALLY don’t understand why a state would tax collectible coins.
Easy to understand. Greed and incompetence.
They can't handle budgets and are always trying to increase tax intake because of that.
For example, in WA State, they continually complain about certain financial situations/social program costs, but they can never manage them well...so they increase taxes to pay for them. A few years later, they increase taxes again because things only got worse, not better. No accountability. No responsibility.
@BAJJERFAN said:
Are they exempt from collecting sales taxes?
According to Grok:
General Rule
Most states treat garage/yard sales as "casual," "isolated," or "occasional" sales. These are exempt from sales tax collection requirements when you're selling used personal items (not in the regular course of business).
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
Who or what should determine when investment grade kicks in for say a Morgan dollar? Stock prices aren't opinions and stocks aren't certified. On a day like today anyone could buy a share of NVDA for about $200. A 1884-O Morgan ms64 could bring $80 or $800 depending upon certain parameters.
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
So why isn't "investment grade" art exempt? Or "investment grade" Lionel trains? Bullion could be, and often is, in a different category. There is no reason why an SVDB cent should be treated any differently than Hess trucks. It's only "investment grade" because you want to think of it as an investment, not because it is any more of an investment than an antique car.
.
All good points, albeit maybe twisting my comments somewhat ... but fair enough. There are a lot of things that can be considered safe haven (or not so safe) places to park money that are sometimes subject, and other times not subject to Point of Sale taxation. Although for a state that didn't tax these two items forever, it seems like just another revenue grab ... and it that respect, I'm not a fan.
Also Investment vehicles can be ROI as a Return OF Investments just as much as those that that earn a Return ON Investment. But again, all fair points.
However, for those of you commenting like @BAJJERFAN and @jmlanzaf , are you living in states that charge sales tax on your Coin and Bullion purchases? And are you spending more building those collections or bullion stacks at a rate of, let's say, more than $5,000. a year? Just curious.
Not to go political, but point-of-sale taxation on earned money is a form of double taxation, and while we have all become conditioned to paying some, and generally all reap the benefits (and downfalls) of the services those taxes support, when the rules change and the reasoning seems unjust, it is our civic duty to question authority when needed and/or fight back as necessary.
And on that last note, FWIW, I spent more than a few years serving with other men and women who helped make sure we all have the freedom to do the same.
AFAIK Iowa has no ST on coins or bullion. I haven't bought a coin since eBay started collecting the tax and I didn't want to deal with any screwups AND at my age it makes little sense to dump money into coins. If I struck it rich I might get back into it.
@Lakesammman said:
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
Always looking for original, better date VF20-VF35 Barber quarters and halves, and a quality beer.
@Lakesammman said:
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
Any idea on how their OTC buy prices are? Do you think it is lower (%wise) than it was before the tax?
@Shabu92 said:
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
So, if a poor person saves his money and buys a tenth oz or quarter oz AGE, he has to pay sales tax on his investment while a wealthy investor can buy one or more AGE's and he doesn't have to pay any sales tax? Doesn't sound very fair to me. I can certainly understand why people would go out of their way to avoid paying this unfair tax.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@liefgold Great collections, ebay, heritage and every other major seller will charge you sales tax if it is required by the state you live in…period!
Is that a recent change that has taken place in the past 18 months? I’ve won a number of paper currency items there and GC never charged sales tax leaving the onus on me to pay it.
@liefgold Great collections, ebay, heritage and every other major seller will charge you sales tax if it is required by the state you live in…period!
Is that a recent change that has taken place in the past 18 months? I’ve won a number of paper currency items there and GC never charged sales tax leaving the onus on me to pay it.
@liefgold Great collections, ebay, heritage and every other major seller will charge you sales tax if it is required by the state you live in…period!
Is that a recent change that has taken place in the past 18 months? I’ve won a number of paper currency items there and GC never charged sales tax leaving the onus on me to pay it.
I wonder if any states are following up/keeping track of this? The states are getting somewhat smart about tis
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
Welllllllll, not really. Depending on the state, it's still supposed to be paid.
Can you imagine a garage sale seller filing a sales tax form?
Are they exempt from collecting sales taxes?
In the states where I have lived, you are limited to two garage sales a year. The sales are viewed as “casual sales” and are not subject to sales taxes.
Many coin collectors refuse to pay sales taxes at the shows. I had a table at a Massachusetts show when I tried to make a sale to a person who said he was from Connecticut. “Why should I have to pay Massachusetts sales tax when I am from Connecticut?” he asked. Because you are in Massachusetts (dummy). (Connecticut did exempt sales of U.S. coins at the time.) He refused to buy the item. Later I sold it for more after the market price increased. So he lost out on an item which would have gone up in value for him.
Sales taxes make it hard for a dealer when collectors think they shouldn’t pay them. The smart guys make deals at the $500 to $1,000 level where the tax drops off. Sometimes it’s cheaper to buy another coin to get you over the top.
The tax, as it has become in Maryland, except at the Baltimore Show, makes really impossible to do business there. The dealers in that state have my condolences. I can’t image how hard it must be to do business in a state with a 10% rate which never goes away.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@Shabu92 said:
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
So, if a poor person saves his money and buys a tenth oz or quarter oz AGE, he has to pay sales tax on his investment while a wealthy investor can buy one or more AGE's and he doesn't have to pay any sales tax? Doesn't sound very fair to me. I can certainly understand why people would go out of their way to avoid paying this unfair tax.
Most bullion deals are done on very thin margins. Sales taxes are deal killers.
Add to that the fact that a tenth or quarter ounce AGE has a higher premium, relative to its gold content, and the deal becomes less attractive.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@pursuitofliberty said:
It's a problem here in WA, and they need to repeal the ruling and reconsider. ESPECIALLY for Bullion, but I think also for Coins and Currency. Even if we take a page out of CA's book and have a cutoff of 1500./2000. for coins and Bullion, that would be better, although still questionable (in my mind).
My understanding is this issue was long repealed as un-Constitutional in this State and then got "slipped" into other legislation.
People who buy Bullion, and to a large extent coins over a certain level are Saving and Investing, in some way, shape or form ... not consuming. No one should pay Sales Tax on Saving and investing.
lol. Not to mention referring to the BP. But I've all but given up fighting this nonsense. Coin collectors think their coins should be different than other collectibles. I'm sure a model train afficionado would also want an exemption and probably also thinks of their model trains as "investments".
Lionel Trains are not an investment?
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
So why isn't "investment grade" art exempt? Or "investment grade" Lionel trains? Bullion could be, and often is, in a different category. There is no reason why an SVDB cent should be treated any differently than Hess trucks. It's only "investment grade" because you want to think of it as an investment, not because it is any more of an investment than an antique car.
.
All good points, albeit maybe twisting my comments somewhat ... but fair enough. There are a lot of things that can be considered safe haven (or not so safe) places to park money that are sometimes subject, and other times not subject to Point of Sale taxation. Although for a state that didn't tax these two items forever, it seems like just another revenue grab ... and it that respect, I'm not a fan.
Also Investment vehicles can be ROI as a Return OF Investments just as much as those that that earn a Return ON Investment. But again, all fair points.
However, for those of you commenting like @BAJJERFAN and @jmlanzaf , are you living in states that charge sales tax on your Coin and Bullion purchases? And are you spending more building those collections or bullion stacks at a rate of, let's say, more than $5,000. a year? Just curious.
Not to go political, but point-of-sale taxation on earned money is a form of double taxation, and while we have all become conditioned to paying some, and generally all reap the benefits (and downfalls) of the services those taxes support, when the rules change and the reasoning seems unjust, it is our civic duty to question authority when needed and/or fight back as necessary.
And on that last note, FWIW, I spent more than a few years serving with other men and women who helped make sure we all have the freedom to do the same.
I'm in NY State. ALL coin sales are taxable. The only exemption is for bullion purchases (defined by the premium over melt) over $1000. And, FWIW, NY State is considering removing the bullion exemption.
I do not spend more than $5000 per year on my "collection". In fact, I have not been adding to my collection for probably 8-10 years. It is less related to the sales tax issue, however, and more related to the desire to have Return ON Investment. (I like "return of investment", by the way.)
And, if I may inch closer to politics, I'm NOT a big fan of any taxation. However, I do prefer consumption taxes to other modes of taxation. But if we like the services, they need to be paid for somehow. But I just don't see why "coins" should be different than any other collectible when it comes to sales tax. [Again, bullion can be an exception as it can be held in IRAs and is more of an investment vehicle.]
All comments reflect the opinion of the author, even when irrefutably accurate.
@safari_dude said:
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
That only makes sense if you are paying face value. Otherwise, you are not trading it as "legal tender".
All comments reflect the opinion of the author, even when irrefutably accurate.
@Shabu92 said:
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
So, if a poor person saves his money and buys a tenth oz or quarter oz AGE, he has to pay sales tax on his investment while a wealthy investor can buy one or more AGE's and he doesn't have to pay any sales tax? Doesn't sound very fair to me. I can certainly understand why people would go out of their way to avoid paying this unfair tax.
You'll be glad to hear that NY State is much more "fair". The sales tax on coins never disappears, even if you spend a million! [There is a bullion exemption over $1000.]
All comments reflect the opinion of the author, even when irrefutably accurate.
Welllllllll, not really. Depending on the state, it's still supposed to be paid.
Can you imagine a garage sale seller filing a sales tax form?
I had a garage sale last year and paid NY State sales tax on all of my sales. I was selling excess inventory.
You paid the tax? Or did you collect it from the buyer?
I paid the tax because I didn't want to be bothered with small change at point-of-sale. I sold $600 and sent $48 (8% in my county) to Albany when I filed my sales tax forms.
While I doubt NY State would care about the garage sale, it seemed only right since the items sold were bought with a sales tax exemption for resale. The fact that they were resold at a garage sale instead of a coin show didn't seem germane.
All comments reflect the opinion of the author, even when irrefutably accurate.
@Lakesammman said:
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
It makes sense to me that this dealer found an outlet for their purchases. You need to be able to adapt to stay in business.
What doesn’t make sense to me is why they wouldn’t continue to offer items for sale in the store?
If you have a location that is open to the public, why not at least offer items for those willing to pay the sales tax? I’m assuming if they sold any supplies or books in the shop they have a sellers permit and were already collecting sales tax on any of those items?
It could be a win win. Especially with more shops and shows just closing up.
@safari_dude said:
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
That only makes sense if you are paying face value. Otherwise, you are not trading it as "legal tender".
Just looked at my last several US Mint purchases…and none were taxed for Florida.
@jackpine20 said:
Wisconsin stopped charging sales tax on sales of precious metal bullion and coins on March 23, 2024. Governor Tony Evers signed Assembly Bill 29 (2023 Wisconsin Act 149) into law on March 21, 2024, creating a permanent sales and use tax exemption for gold, silver, platinum, palladium, or copper items containing at least 35% metal.
In general, Wisconsin has a 5% sales tax and my municipality charges another 0.5%. Coins and bullion are exempt, right? By law, they are.
Somehow eBay still charges me the 5.5% tax on the coins I buy on that platform. I have no problem paying 13% for the service that eBay provides (when I sell), but the tax (when I buy) is not right.
Just because I can, I thought I would share a purchase I made at the Central States Coin Show last week in Illinois (the dealer is from Oregon). I paid cash without taxation. [edited for clarity]
Contact your state revenue dept about refunding whatever eBay collects.
@Shabu92 said:
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
So, if a poor person saves his money and buys a tenth oz or quarter oz AGE, he has to pay sales tax on his PURCHASE while a wealthy investor can buy one or more AGE's and he doesn't have to pay any sales tax? Doesn't sound very fair to me. I can certainly understand why people would go out of their way to avoid paying this unfair tax.
@safari_dude said:
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
@Lakesammman said:
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
It makes sense to me that this dealer found an outlet for their purchases. You need to be able to adapt to stay in business.
What doesn’t make sense to me is why they wouldn’t continue to offer items for sale in the store?
If you have a location that is open to the public, why not at least offer items for those willing to pay the sales tax? I’m assuming if they sold any supplies or books in the shop they have a sellers permit and were already collecting sales tax on any of those items?
It could be a win win. Especially with more shops and shows just closing up.
Good question. They primarily sell bullion, with a heavy lean toward .999 silver and 90% constitutional. My guess is the 10% sales tax makes it hard for them to compete, and they just don’t bother much with retail sales. Of course this is all pure speculation on my part. That said, I do swing in there occasionally and ask if they have any 90%. Sometimes they do, and they let me pick through it before it gets shipped off. I buy a little if I find something interesting.
Dave
Always looking for original, better date VF20-VF35 Barber quarters and halves, and a quality beer.
@Lakesammman said:
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
Any idea on how their OTC buy prices are? Do you think it is lower (%wise) than it was before the tax?
I’ve wondered that myself. I’ve sold some small gold bars to them several times (last year) and their pricing was very fair. Next time I sell to them I might get a better read on that. Seems reasonable that they’d have to adjust buy back prices down with most things being shipped to wholesalers.
Dave
Always looking for original, better date VF20-VF35 Barber quarters and halves, and a quality beer.
@illini420 said:
purchases from the US Mint (the Federal government) are exempt from state sales taxes
There has been a long term understanding that the states do not tax purchases from the Federal Government.
Retired dealer and avid collector of U.S. type coins, 19th century presidential campaign medalets and selected medals. In recent years I have been working on a set of British coins - at least one coin from each king or queen who issued pieces that are collectible. I am also collecting at least one coin for each Roman emperor from Julius Caesar to ... ?
@safari_dude said:
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
That only makes sense if you are paying face value. Otherwise, you are not trading it as "legal tender".
Just looked at my last several US Mint purchases…and none were taxed for Florida.
No state sales tax in any state on U.S. Mint products.
All comments reflect the opinion of the author, even when irrefutably accurate.
Comments
I live in TX but occasionally I get sales taxes charged on purchases from other states. Talking eBay coins only here. I have to watch my purchases and suggest others do the same. Recently, the only tax I’ve been hit with was from Maryland.
PS I just looked up Maryland sales taxes and the info contradicts my experience. I’ve seen eBay screw up in the past. Any MD dealers want to comment?
MD sales tax would NEVER be due on an item the vendor ships to TX. Applies to other states as well.
Florda has no sales tax on U.S. coins. I believe that there is no tax on purchases of bullion and single foreign coins at over $500.
The Maryland legislature, both chambers, has voted unanimously essentially to undo what they and the governor did a year ago. The situation was, and hopefully soon will be again, pending the governor's signature, that coin and bullion purchases over $1000 are not taxed. The current situation is that all of it gets taxed unless the sale occurs at the Baltimore Convention Center, i.e., at one of Whitman shows.
Collector of Liberty Seated Half Dimes, including die pairs and die states
We are hoping to establish residency in another state in the next 1-2 years - would have done it sooner if not for baby sitting duties!
Hope to resume collecting then!
Thanks for the interesting comments and perspectives.
BTW, talked with a local dealer. He's setting up another shop out of state. He can continue to buy here over the counter, then ship to his other store for resale.
Seems like a smart strategy.
I live in California, and if I spend $2,000 or more, there's no tax on my coins or bullion. Bought two coins for a total $2,000 a couple of weeks ago, all tax free because it was one transaction.
It is true. The dealer or whomever collects it for the state. Shipping is another matter as the dealer is the one who charges that. Isn't pedantry wonnerful?
With the over $2000 exemption in California, I know one dealer who will sell you "collectible" $100 bills for $100.10 to get you over the $2000 limit. And in most cases, customers use those same "collectible" bills to pay for the transaction.
Told him before that doesn't work as paper money isn't part of the exemption. That sort of game might work if he just added whatever was needed in 90% junk silver to the invoice to get it over $2000, then in a separate transaction bought the junk silver right back from the customer.
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 700
But they are collectible so are they tax exempt? I bet not.
IMO there is nothing special about coins or bullion that differentiates them from common merchandise. A lot of people collect Legos. Should they be tax exempt?
Now there is a thought. Moms and Dads everywhere would be happy. Kids too!
Coins, common merchandise??? Seriously, when one is spending thousands of dollars on investment grade collectibles and paying specialized capital gains taxes on their profits....
Can you imagine a garage sale seller filing a sales tax form?
Not really. How many people sell stuff at a garage sale for more than they paid?
Doesn't matter.
Sales tax is based on revenue not profit.
Yes, that's correct. My bad. However... most garage sales of used personal items are treated as casual/occasional sales and are not subject to sales tax in practice.
I had a garage sale last year and paid NY State sales tax on all of my sales. I was selling excess inventory.
All comments reflect the opinion of the author, even when irrefutably accurate.
So why isn't "investment grade" art exempt? Or "investment grade" Lionel trains? Bullion could be, and often is, in a different category. There is no reason why an SVDB cent should be treated any differently than Hess trucks. It's only "investment grade" because you want to think of it as an investment, not because it is any more of an investment than an antique car.
All comments reflect the opinion of the author, even when irrefutably accurate.
.
All good points, albeit maybe twisting my comments somewhat ... but fair enough. There are a lot of things that can be considered safe haven (or not so safe) places to park money that are sometimes subject, and other times not subject to Point of Sale taxation. Although for a state that didn't tax these two items forever, it seems like just another revenue grab ... and it that respect, I'm not a fan.
Also Investment vehicles can be ROI as a Return OF Investments just as much as those that that earn a Return ON Investment. But again, all fair points.
However, for those of you commenting like @BAJJERFAN and @jmlanzaf , are you living in states that charge sales tax on your Coin and Bullion purchases? And are you spending more building those collections or bullion stacks at a rate of, let's say, more than $5,000. a year? Just curious.
Not to go political, but point-of-sale taxation on earned money is a form of double taxation, and while we have all become conditioned to paying some, and generally all reap the benefits (and downfalls) of the services those taxes support, when the rules change and the reasoning seems unjust, it is our civic duty to question authority when needed and/or fight back as necessary.
And on that last note, FWIW, I spent more than a few years serving with other men and women who helped make sure we all have the freedom to do the same.
“We are only their care-takers,” he posed, “if we take good care of them, then centuries from now they may still be here … ”
Todd - BHNC #242
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CAC | PCGS | NGC
Are they exempt from collecting sales taxes?
According to Grok:
General Rule
Most states treat garage/yard sales as "casual," "isolated," or "occasional" sales. These are exempt from sales tax collection requirements when you're selling used personal items (not in the regular course of business).
Who or what should determine when investment grade kicks in for say a Morgan dollar? Stock prices aren't opinions and stocks aren't certified. On a day like today anyone could buy a share of NVDA for about $200. A 1884-O Morgan ms64 could bring $80 or $800 depending upon certain parameters.
That would generate capital gains tax, not sales tax.
You paid the tax? Or did you collect it from the buyer?
As I noted in a later comment: "Yes, that's correct. My bad."
AFAIK Iowa has no ST on coins or bullion. I haven't bought a coin since eBay started collecting the tax and I didn't want to deal with any screwups AND at my age it makes little sense to dump money into coins. If I struck it rich I might get back into it.
My local shop is only buying bullion and collections over the counter now, and selling it all to an out of state wholesaler. Nice work, Washington. It's kind of sad --- all their display cases are now sitting empty. They seem pretty busy buying over the counter, but I wonder if this model is really sustainable long term. We shall see.
Dave
Any idea on how their OTC buy prices are? Do you think it is lower (%wise) than it was before the tax?
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
So, if a poor person saves his money and buys a tenth oz or quarter oz AGE, he has to pay sales tax on his investment while a wealthy investor can buy one or more AGE's and he doesn't have to pay any sales tax? Doesn't sound very fair to me. I can certainly understand why people would go out of their way to avoid paying this unfair tax.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
@2windy2fish said:
Is that a recent change that has taken place in the past 18 months? I’ve won a number of paper currency items there and GC never charged sales tax leaving the onus on me to pay it.
I wonder if any states are following up/keeping track of this? The states are getting somewhat smart about tis
Many numismatic items are still considered legal tender and therefore shouldn’t be taxed. Even if a rare SLH quarter that is slabbed is sold, it shouldn’t be taxed as it can still be used as a quarter, correct?
In the states where I have lived, you are limited to two garage sales a year. The sales are viewed as “casual sales” and are not subject to sales taxes.
Many coin collectors refuse to pay sales taxes at the shows. I had a table at a Massachusetts show when I tried to make a sale to a person who said he was from Connecticut. “Why should I have to pay Massachusetts sales tax when I am from Connecticut?” he asked. Because you are in Massachusetts (dummy). (Connecticut did exempt sales of U.S. coins at the time.) He refused to buy the item. Later I sold it for more after the market price increased. So he lost out on an item which would have gone up in value for him.
Sales taxes make it hard for a dealer when collectors think they shouldn’t pay them. The smart guys make deals at the $500 to $1,000 level where the tax drops off. Sometimes it’s cheaper to buy another coin to get you over the top.
The tax, as it has become in Maryland, except at the Baltimore Show, makes really impossible to do business there. The dealers in that state have my condolences. I can’t image how hard it must be to do business in a state with a 10% rate which never goes away.
Most bullion deals are done on very thin margins. Sales taxes are deal killers.
Add to that the fact that a tenth or quarter ounce AGE has a higher premium, relative to its gold content, and the deal becomes less attractive.
I'm in NY State. ALL coin sales are taxable. The only exemption is for bullion purchases (defined by the premium over melt) over $1000. And, FWIW, NY State is considering removing the bullion exemption.
I do not spend more than $5000 per year on my "collection". In fact, I have not been adding to my collection for probably 8-10 years. It is less related to the sales tax issue, however, and more related to the desire to have Return ON Investment. (I like "return of investment", by the way.)
And, if I may inch closer to politics, I'm NOT a big fan of any taxation. However, I do prefer consumption taxes to other modes of taxation. But if we like the services, they need to be paid for somehow. But I just don't see why "coins" should be different than any other collectible when it comes to sales tax. [Again, bullion can be an exception as it can be held in IRAs and is more of an investment vehicle.]
All comments reflect the opinion of the author, even when irrefutably accurate.
That only makes sense if you are paying face value. Otherwise, you are not trading it as "legal tender".
All comments reflect the opinion of the author, even when irrefutably accurate.
You'll be glad to hear that NY State is much more "fair". The sales tax on coins never disappears, even if you spend a million! [There is a bullion exemption over $1000.]
All comments reflect the opinion of the author, even when irrefutably accurate.
I paid the tax because I didn't want to be bothered with small change at point-of-sale. I sold $600 and sent $48 (8% in my county) to Albany when I filed my sales tax forms.
While I doubt NY State would care about the garage sale, it seemed only right since the items sold were bought with a sales tax exemption for resale. The fact that they were resold at a garage sale instead of a coin show didn't seem germane.
All comments reflect the opinion of the author, even when irrefutably accurate.
It makes sense to me that this dealer found an outlet for their purchases. You need to be able to adapt to stay in business.
What doesn’t make sense to me is why they wouldn’t continue to offer items for sale in the store?
If you have a location that is open to the public, why not at least offer items for those willing to pay the sales tax? I’m assuming if they sold any supplies or books in the shop they have a sellers permit and were already collecting sales tax on any of those items?
It could be a win win. Especially with more shops and shows just closing up.
My Ebay Store
Just looked at my last several US Mint purchases…and none were taxed for Florida.
purchases from the US Mint (the Federal government) are exempt from state sales taxes
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 700
Contact your state revenue dept about refunding whatever eBay collects.
FIFY
But it is NOT being used for legal tender.
@TxCollector What state do you reside in?
Good question. They primarily sell bullion, with a heavy lean toward .999 silver and 90% constitutional. My guess is the 10% sales tax makes it hard for them to compete, and they just don’t bother much with retail sales. Of course this is all pure speculation on my part. That said, I do swing in there occasionally and ask if they have any 90%. Sometimes they do, and they let me pick through it before it gets shipped off. I buy a little if I find something interesting.
Dave
I’ve wondered that myself. I’ve sold some small gold bars to them several times (last year) and their pricing was very fair. Next time I sell to them I might get a better read on that. Seems reasonable that they’d have to adjust buy back prices down with most things being shipped to wholesalers.
Dave
There has been a long term understanding that the states do not tax purchases from the Federal Government.
No state sales tax in any state on U.S. Mint products.
All comments reflect the opinion of the author, even when irrefutably accurate.